Does a weak global economy threaten necessary E&P investment?

The Center for Strategic and International Studies will host a discussion of a weak global economy's impacts on upstream oil and gas investments on June 2 from 2 to 3 p.m. at CSIS, 1800 K Street, NW.

May 26, 2009

2 min read

June 3: The Center for Strategic and International Studies' Energy and National Security program will host a discussion of a weak global impacts investments on upstream oil and gas investments from 2 to 3 p.m. at the CSIS B-1 Conference Center, 1800 K Street, NW, in Washington.

Guy F. Caruso, former administrator at the US Energy Information and Administration and now a senior advisor on energy and natural security at CSIS, will moderate. Scheduled panelists include Alan Crain, senior vice president and general counsel at Baker Hughes Inc.; Susan Farrell, senior director for upstream and gas at PFC Energy, and Adam Sieminski, chief energy economist at Deutsche Bank.

Why it matters: Basically, this discussion will examine a critical subject that otherwise would be overlooked in Washington's 2009 energy debates. Record high crude oil prices may have supported a bullish outlook for upstream oil and gas investment last summer, but the plunge in both prices and demand which has occurred since has changed the picture dramatically.

The situation will change as the global economy recovers and energy demand growth returns, particularly in China, India and other emerging industrial nations. Short-term prospects remain grim as much of the oil and gas industry tries to invest in projects it knows will be needed later.

This conference will consider the industry's view of markets during the current economic turmoil now and going forward, how that view influences outlays for continuing projects as well as new ones, and which projects or supplies are most vulnerable to weak prices and tight credit. Most important, these experts will consider how serious the risk is that under-investment now, combined with economic recovery and rebounding demand, might lead to tight markets in the future and high prices similar to last year's.

For additional information or to register, contact CSIS by e-mail at [email protected], by telephone at (202) 887-0200 or online at www.csis.org.

Contact Nick Snow at [email protected]